School Employees - DROP Rollover Planning

DROP Rollover Planning

To learn about rolling over a 403(b) plan or how to get one started - there are many options, let us help you choose which plans are appropriate for you.

FRS Deferred Retirement Option Program (DROP) is available to eligible members of the Florida Retirement System who participate in the FRS pension plan. FRS employees can enter DROP as soon as they reach their normal retirement date. That date is when the employee reaches age 62 or completes 30 years of service, regardless of their age. Participation in DROP is for a maximum of 60 months.

NOTE: You will need to decide about your DROP payout and your pension payout five years before you terminate service from your employer. Even if your circumstances change during that five your period, the decision you originally made is irrevocable. In other words, once you make a decision regarding DROP or your pension, you cannot change your mind. Your employer cannot recommend a strategy for you; it's all up to you.

Another concern we deal with frequently are the questions concerning which of the four DROP/pension options to choose. Options 1 through 4 are complicated and can have significant financial consequences both for the FRS employee and their family. Again, these decisions have to be made five years in advance. If you have DROP and pension estimates from FRS, we can sit down and explain simply and directly how each option would affect your specific situation.

Call us before you make that final choice so we can help you understand the consequences of each option. Remember, you only get once chance to do this right.

Call our office at 407-937-2234 and let us help you make an informed decision.